Deutsche Bank plans to cut more jobs at its investment bank to lower costs as business stagnates. The bank is weighing the reductions, which come in addition to the 2000 announced in 2012, over the coming months across its corporate finance, capital markets and trading businesses. Managing directors are included in the plan.
The cuts are a result, in part, of the bank’s decision to increase base pay for senior bankers, boosting fixed costs. While no decision has been made on the total number of job losses they will probably total about 500. Deutsche Bank joined JPMorgan Chase & Co and Citigroup in saying investment banking revenue came under pressure in the first months of the year, which typically make the largest contribution to earnings. Clients are trading less as the Federal Reserve slows its monthly asset purchases and leaves bond investors preparing for rising interest rates. Some banks are facing pressure to raise pay as European Union curbs on variable compensation kick in this year.
